Over-dependency on international financial institutions

Other Names:
Dependence of countries on external financing
Excessive dependence of countries on external budgetary control
Over-dependence of countries on external funding
Reliance of countries on foreign loans
Over-reliance of countries on foreign borrowing

There is an excessive indebtedness of many countries to the public and private international financial institutions, and linked with this, a foreign dependency amounting to virtual total subordination to the international financial system and the forces behind it.


Indebtedness has now reached such dimensions (US$ 810 billion at the end of 1983), that the mechanism of debt service now drains the bulk of the economic surplus (that is, the portion of national income otherwise available for net investment) of many countries.

Related Problems:
Dependence on customs revenue
Related UN Sustainable Development Goals:
GOAL 8: Decent Work and Economic GrowthGOAL 16: Peace and Justice Strong InstitutionsGOAL 17: Partnerships to achieve the Goal
Problem Type:
E: Emanations of other problems
Date of last update
04.10.2020 – 22:48 CEST